Base Offering Circular – Multifamily 3 REMIC Reporting......................................................................................................... 24 CERTAIN FEDERAL INCOME TAX CONSEQUENCES .......................................................... 25 General........................................................................................................................ 25 Tax Treatment of Regular Securities............................................................................... 26 Tax Treatment of Residual Securities.............................................................................. 39 REMIC Qualification..................................................................................................... 50 Tax Treatment of MX Securities ................................................................................... 51 Exchanges of MX Classes and Regular Classes................................................................ 53 Taxation of Foreign Holders of REMIC Securities and MX Securities................................ 53 Reporting and Tax Administration .................................................................................. 54 Backup Withholding....................................................................................................... 55 STATE TAX CONSIDERATIONS ........................................................................................... 55 ERISA CONSIDERATIONS .................................................................................................... 56 LEGAL INVESTMENT CONSIDERATIONS ............................................................................ 57 SECONDARY MARKET.......................................................................................................... 57 APPENDIX I--Class Types APPENDIX II--Glossary